Tata Motors (TMCV) Q2 25/26 earnings summary

Executive summary

• Achieved a historic milestone with the successful demerger and listing of the commercial vehicle business as Tata Motors Limited (TMCV) on BSE and NSE, effective October 1, 2025.

• Q2 FY26 saw 12% YoY growth in wholesales to 97,000 units, with strong momentum across product lines and exports.

• Entire GST reduction benefit passed to customers, leading to price cuts and supporting government economic objectives.

• Expanded product portfolio with new launches and strengthened electric mobility initiatives, including major EV bus deliveries and infrastructure expansion.

• The festive season and GST 2.0 reforms boosted demand, with expectations for continued momentum in H2 FY26, especially from construction, infrastructure, and mining sectors.

Financial highlights

• Q2 FY26 revenue reached ₹18,400 crore, up 6.6% YoY, with EBITDA margin at 12.2% (up 150 bps YoY) and EBIT margin at 9.8% (up 200 bps YoY).

• PBT (before exceptional items) for Q2 FY26 was ₹1,700 crore, up ₹469 crore YoY; free cash flow reached ₹2,200 crore.

• Consolidated Q2 FY26 revenue was ₹18,600 crore, EBITDA margin at 11.4%, and reported PBT was negative due to a mark-to-market loss on Tata Capital investments.

• Net cash position as of September 30, 2025, was ₹1,200 crore.

• Free cash flow for H1 FY26 hit a record ₹417 crore.

Outlook and guidance

• Growth momentum expected to continue in H2 FY26, driven by GST cuts, festive demand, and sectoral recovery in construction, infrastructure, and mining.

• Focus on sustaining profitable growth, double-digit EBITDA margins, robust cash flows, and high ROCE.

• Anticipates higher single-digit growth in H2 FY26, with Q3 starting on a positive note.